2025 NYC Mayor Race
- Thread starter the cac mamba
- Start date
Man checks Mayor where the city tax money is being reinvested. Never thought about it this way.
Discriminatory lending practices that target Black homebuyers persist in NYC
Black and Brown home buyers continue to face discriminatory lending practices and higher interest rates in comparison to white homebuyers.
amsterdamnews.com
New York Amsterdam News: Discriminatory lending practices that target Black homebuyers persist in NYC
[Read Original]
By Ariama C. Long
New York City has taken some steps to address the city’s housing crisis with the passage of City of Yes and other pro-housing initiatives. But according to recent data, Black and Brown home buyers continue to face discriminatory lending practices and higher interest rates in comparison to white homebuyers.
The New Economy Project (NEP) released an analysis of home mortgage loan data for three of the city’s major banks: Bank of America, Citibank, and JPMorgan Chase.
“We found that Black borrowers were receiving the short end of the stick,” said Will Spisak, senior program associate at NEP. “Even when interest rates were at historic lows they were being charged higher interest rates than white borrowers. And when interest rates started to increase, those rates increased faster and higher for Black borrowers.”
From 2018 to 2023, the report found that the city’s biggest banks continued to charge Black New Yorkers higher rates than other borrowers. This interest rate disparity cost a Black homeowner about $30,000 more in interest payments over the course of a 30-year mortgage. During the recovery period following the COVID-19 pandemic, between 2021 and 2023, the report said racial lending disparities in the city were especially pronounced as borrowing costs surged. Even Black borrowers with incomes above $100,000 had higher interest rates than white borrowers with lower incomes, said the report.
The banks also denied Black homeowners refinancing loans, which helps lower mortgage payments, at nearly twice the rate of white homeowners. This happened even at the height of the COVID-19 pandemic when interest rates reached historic lows, said the report.
Justin Pack, 35, works for Amazon Web Services and owns a 3-family home built in 1901 in Bushwick, Brooklyn. Pack grew up in New Jersey, and lived in Texas during and after college. He moved to a Bronx apartment near Yankee Stadium a few years ago. Looking for his first home, he put in offers on four different properties ranging in price from $650,000 to $880,000 in the Bronx, he said, but the neighborhood was rapidly gentrifying. He also tried for a vacant, debilitated property in Harlem that “had no plumbing, no electricity” and you could see through the ceiling. It was still listed for $1.8 million.
“The city has so many regulations and even with an attorney, if you don’t know, you could be in violation,” said Pack about how difficult the homebuying process is and homeownership is in the city. “The city systems are onerous. Like to register you have to go online, fill out a form and then print out the form and then fill it out by hand.”
Pack’s home in Bushwick previously belonged to a Jamaican family that had owned the house since the 1950s. The elderly owners had passed during the pandemic, and their children didn’t want to keep the house, said Pack. His current mortgage rate is 6.25%. He opted to use a broker and a smaller mortgage company as opposed to going through a major bank.
Black Home Mortgage Borrowers Pay More in NYC, New Study Finds
Pricier loans add up to tens of thousands of dollars more in costs than for white borrowers, according to an analysis of Bank of America, Citibank and Chase lending.
www.thecity.nyc
Black Home Mortgage Borrowers Pay More in NYC, New Study Finds
Pricier loans add up to tens of thousands of dollars more in costs than for white borrowers, according to an analysis of Bank of America, Citibank and Chase lending.
by Samantha Maldonado Oct. 22, 2024, 5:00 a.m.
Republish
A for-sale sign advertised a hone in the Wakefield neighborhood of The Bronx, July 13, 2022. Credit: Ben Fractenberg/THE CITY
Three major banks charged Black homeowners in New York City more interest on their mortgages than they did white borrowers, according to a new analysis of loan data by The New Economy Project, a racial and economic justice advocacy group.
At Bank of America, Citibank and JP Morgan Chase, white borrowers received interest rates of 3.77% on average compared to 4.13% for Black borrowers between 2018 and 2023. Other non-white borrowers received an average interest rate of 3.83% during that time period.
(JP Morgan Chase is a corporate sponsor of THE CITY; see our ethics guidelines here.)
The discrepancies will result in Black homebuyers paying an estimated $31,200 more in interest on average over a 30-year mortgage compared to white buyers, the analysis found.
The analysis crunched data lenders provide to comply with the federal Home Mortgage Disclosure Act, which shows home lending activity for each census tract by race of the borrower. Since the data does not include information about borrowers’ credit scores, a key factor affecting interest rates, the analysis considered income and debt levels, and found the disparities still existed: White borrowers who earned less than $100,000 had an average interest rate of about 3.93%, compared to 4.20% for Black borrowers who earned more than $100,000.
Further, the analysis found that the three banks denied Black homeowners refinancing almost twice as often as white homeowners. Nearly a quarter of Black homeowners were rejected when they tried to refinance, compared to just under 13% of white homeowners.
“Black borrowers are getting stuck with those higher interest rates during times of generally higher interest rates, and then interest rates fall and they try to refinance, but they can’t, while white borrowers can,” said Will Spisak, a senior program associate with the New Economy Project.
He should start threatening to sue anyone who dares to say this on radio or TV
First it was all the rich people were leaving NYC due to him winning, now it’s they’re the ones who won him the primary. Is it oochie Wally Wally or is it One Mic?
Outlaw
New Hope For the HaveNotz
The working class wants upwards mobility not more comfortable poverty, that’s what these socialist don’t understand
This why the party needs to die at this point, the fact that the entire dnc establishment is bought by a foreign government and is running interference for them is absolutely concerning.
He won 50k-100k what are you babbling about?
Cuomo won the wealthy and won the poor.
Zohran won the working class.
Outlaw
New Hope For the HaveNotz
Outlaw
New Hope For the HaveNotz
The poor isn’t the working class? I was referring to the working class poor not the middle class
just sue.
Once the data starts to show what they don’t want to see, establishment democrats will quickly try and reverse course before it’s too late to save their positions. Right now they feel it’s more of a blip and don’t want that blood money to dry up.
Jeffries, Hochul, Gilibrand, and the like are digging a deep hole for their future election prospects if their assumptions are wrong.
50-100k is NOT middle class in nyc, Zohran won a larger segment of working class in nyc hence why he won
Democrats using identity politics, the exact same thing they getting killed by Republicans, is fukking hilarious. 
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